Does anyone know if the privacy policy link has to be on everypage of my site or just the homepage will be fine?
You should read the Adsense terms that you agreed to. The most recent revision of the terms (which would have come up at some point when you logged in) do require a privacy policy. rsobka: I don't know what the linking requirement is. I put my link in a footer on every page, which I'm hoping is OK.
I dont think the updated TOS specifies how/where you have it.. i think as long as it's easy to find is all that matters. I have mine in a header link on all pages.
usually a site has footer links where you put your copywrite, disclosure, and other links. most people have sitemap these days as well. you can setup a page for privacy policy and link to it from your homepage footer or if you are using any PHP include/SSI, you can link to the PP form all pages in your footer.
I have added the privacy policy to my menu which is a bunch of links to my inner pages. So the privacy policy finds a place in each and every page of my site thus satisfying the google revised TOS
I would say sitewide is better, as a visitor can land at your site at any page, keeps you ok with google.